SYLLABUS

MG2351

PRINCIPLES OF MANAGEMENT

1.OVERVIEW OF MANAGEMENT

3 0 0 100
9

Definition - Management - Role of managers - Evolution of Management thought

- Organization and the environmental factors Trends and Challenges of
Management in Global Scenario.
2.

PLANNING

Nature and purpose of planning - Planning process - Types of plans Objectives - Managing by objective (MBO) Strategies - Types of strategies - Policies - Decision
Making - Types of decision - Decision Making Process - Rational Decision Making
3.

ORGANIZING

Nature and purpose of organizing - Organization structure - Formal and informal

groups Iorganization - Line and Staff authority - Departmentation - Span of control
- Centralization and Decentralization - Delegation of authority - Staffing - Selection
and Recruitment - Orientation - Career Development - Career stages Training - Performance Appraisal.
4.

DIRECTING

Creativity and Innovation - Motivation and Satisfaction - Motivation Theories Leadership Styles - Leadership theories - Communication - Barriers to effective
communication - Organization Culture - Elements and types of culture - Managing
cultural diversity.
5.

CONTROLLING
Process of controlling - Types of control - Budgetary and non-budgetary control
Q techniques - Managing Productivity - Cost Control - Purchase Control
Maintenance Control - Quality Control - Planning operations.

L = 45 Total = 45
TEXT BOOKS:
1. Stephen P. Robbins and Mary Coulter, 'Management', Prentice Hall of India,
8th edition.
2. Charles W L Hill, Steven L McShane, 'Principles of Management', Mcgraw Hill
Education, Special Indian Edition, 2007.
REFERENCE BOOKS:
1. Hellriegel, Slocum & Jackson, ' Management - A Competency Based Approach,
Thomson South Western, 10th edition, 2007.
2. Harold Koontz, Heinz Weihrich and Mark V Cannice, 'Management - A global

UNIT I
OVERVIEW OF MANAGEMENT
1) What is Management?
Management is the process of giving direction and controlling the various activities
of the people to achieve the objectives of an organization.
2) Define: Management.
According to Knootz and Weihrich Management is the process of designing and
maintaining of an environment in which individuals working together in groups efficiently
accomplish selected aims.
3) Write some characteristics of Management?
Management is a continuous process. Manager use the resources of
organization both physical as well as human achieve the goal. Management aims act
achieving the organization goals by ensuring effective use of resources.
4) Write any two points favor for management as a science
Management principle should be verified. Reliable basis for predicting future.
5) What is time study?
The movement which takes minimum time is the best one.
6) What is motion study?
Taylor suggested the eliminating wasteful movements and performing
only necessary movement.
7) What is authority?
It is the power given to a person to get work from his subordinates.
8) What is responsibility?
It is the amount of work from a man by his superior.
9) Comment: Management is both A science and an art
Management is a science because it contains general principles. It is also an
art because it requires certain personal skills achieve desired result

10) What is centralization?

The organization is centralized when the power is concentrated with one person.
11) What is decentralization?
If the power is fully distributed to the subordinates of the organization.
12) What is Esprit-de-corps?
This means union is strength. In organization employees should be harmony and
unity.
13) Write some important functions of top level management?
1) Top level management.
2) Middle level management.
3) Lower level management.
14) Write some important functions of top level management?
1) To formulate goals and policies of the company.
2) To formulate budgets.
3) To appoint top executives.
15) Write the functions of management?
1) Planning.
2) Organizing.
3) Staffing.
4) Coordinating.
5) Controlling.
16) Define sole trade?
The sole proprietorship is that form of business organization which owned and
controlled by a single individual.
17) What is partnership?
A partnership is an association of two or more persons to carry on business and to
share its profit and losses.
18) What is Joint Stock Company?
Joint Stock Company is association of many persons who contribute money worth
to common stock and explaining source trade and also share the profit and losses.
19) What is private limited company?
A private limited company is a company which has a minimum paid up capital
dory be prescribed.

20) White is a co-operative society?

It is a voluntary association of persons for mutual benefit and it aims
is accomplished through self heap and collective effort.
21) What is a social responsibility?
Society is the part of the management to interact actions withers to protect
social interest a society.
PART-B
IS MANAGEMENT IS AN ART OA AN SCIENCE?
Management as an Art
The main elements of an art are
Personal Skills
Practical know-how
Application of knowledge
Result orientation
Creativity
Constant practice aimed at perfection
Management is basically an art because of the following reasons
A manager applies his knowledge and skills to coordinate the efforts of his
people
Mgt seeks to achieve concrete practical results
Mgt is creative. It brings out new situation and converts into output
Effective Mgt lead to realization of Organizational and other goals. Mastery in
Mgt requires a sufficiently long period of experience in, managing.
Management as Science
The essential elements of Science
Systematised body of Knowledge
Underlying principles and theories developed through continuous observation,
inquiry, experimentation and research.
Universal truth and applicability.
Organised body of knowledge can be taught and learnt in class room and
outside.
Mgt is a social science. It contains all the essentials of science. It is an inexact
science.
PERT, CPM, Cost A/C, Finance, MBO etc
Thus, the theory (Science) and practice (art) of Mgt go side by side for the
efficient functioning of an organisation.
Management as a Profession
The essential attribute of a profession
A well-defined and organised body of knowledge
Learning and Experience
Entry restricted by qualification
Recognised national body
Ethical code of conduct
Dominance of service motive
Mgt is not a full fledged profession now due to the following shortcomings
Skills not fully developed
No uniform method of entry
Objective is monetary rather than service

Ethical code is not strict

Associations are not statutory bodies
But in India it is developing into a profession and it will be achieved in due course.
Define Managerial Skills?
Conceptual skills
Human Skills
Technical Skills
Design Skills Decision making
Need for Management
1. To increase efficiency
2. To crystallize the nature of Mgt job
3. To improve research in Mgt
4. To attain social goals
Levels of Management
1. Top Level Mgt
Board of Directors, MD, Owners, Chief Executives
To analyse, evaluate and deal with th environmental forces
To establish overall long term goals and broad policies of the company
including the master budget
To appoint departmental and other key executives
To represent the company to the outside world
To coordinate the activities and efforts of different department
2. Middle Level Mgt
Sales Executives, Production Executives, Production executives etc.
To interpret and explain the policies framed by top management
To compile and issue detailed instruction regarding operations
To Cooperateamong themselves so as to integrate various parts of the
division or a department
To motivate supervisory personnel to work for Orgn goals
To develop and train supervisory and operative personnel.
3. Supervisory / Operating / Lower Level Mgt
Superintendents, Branch managers, General Foremen
To plan day to day production within the goals lay down by higher authority
To assign jobs to workers and to make arrangement for their training and
development
To supervise and control workers and to maintain personal contact with
them.
Roles of a manager ?
1. Interpersonal Role - Interacting with people inside and outside the Orgn
Figurehead as a symbolic head of an organisation, the manager performs
routine duties of a legal nature
Leader Hiring, Training, motivating and guiding subordinates
Liason - Interacting with other managers outside the orgn to obtain favours
and information
2. Informational Role Serving as a focal point for exchange of Information
Monitor Seeks and receive information concerning internal and external events so
as to gain understanding of the Orgn and its environment. Disseminator
Transmits information to subordinates, peers and superiors within the Organisation
Spokesperson Speaking on behalf of the Orgn and transmitting
information on Orgn plans, policies and actions to outsiders.

3. Decisional Role Makes important decision

Entrepreneur Initiating changes or improvements in the activities of the
Orgn
Disturbance handler- Taking charge and corrective action when Orgn faces
unexpected crises
Resource allocator Distributing Orgns resources like money, time,
equipment and labour
Negotiator Representing the Orgn in bargaining and negotiations with
outsiders and insiders
Define Importance of Management?
Management is the dynamic life giving element in every business. Without it the
resources of production remain resources and never become production. Sound
Management
provides the following benefits .
Achievement of group goals
Optimum utilization of resources
Fulfillment of social obligations
Economic growth
Stability
Human Development
Meets the challenge of change
Classification of managerial Functions
Functions
Planning
Organising
Staffing
Sub Functions
Forecasting, decision making,
strategy formulation, policy making,
programming, scheduling, budgeting,
problem-solving, innovation,
investigation and research.
Grouping of Functions,
Departmentation, delegation,
decentralisation, activity analysis,
task allocation
Manpower planning, job analysis,
Recruitment, Selection, Training,
Placement, Compensation,
Promotion, appraisal, etc.
Supervision, Motivation,
Directing communication, Leadership, etc
Fixation of standard, recording,
Controlling measurement, reporting corrective
action.
Define fayol 14 principles?
Father of Management Henry Fayol (1841 1925)
Henry Fayol contributed 14 principles to Mgt which is widely applied in all the Orgn
1. Division of Work
2. Authority and Responsibility
3. Discipline

4. Unity of Command
5. Unity of Direction
6. Subordination of individual interest to general interest
7. Remuneration of personnel
8. Centralisation
9. Scalar Chain
10.Order
11.Equity
12.Stability of Tenure of Personnel
13.Initiative
14.Esprit-de-corps

UNIT II
PLANNING
22) Define planning.
Planning is the process of selecting the objectives and determining the course
of action required to achieve these objectives.
23) What is the main objective of planning?
Planning is a primary function of organization It helps in achieving objectives
It done to cope with uncertainty and changeIt helps in facilitating control It helps in
coordination Planning increases organization effectiveness. Planning guides in
decision making
24) Define Mission
Mission may be defined as a statement which defines the role that an
organization plays in the society
25) Define objectives
The term objective or goals are often used interchangeably. Objective
are the end results towards which the activities of attain its objectives.
26) What is mean by strategy
`Strategy of an organization is the programmers of action and deployment
of resources to attain its objectives.

27) What are the factors to be considered while formulating strategies ?

Mission and objectives of an organization.Values , aspiration and prejudices of top
level management Opportunities and threads of the external environment . Strength and
weakness of the firm in various aspects such as funds , organization structure , human
talent , technology etc..

28) Define policies

Policies are general statement or understanding which provide guidance in
decision making to various managers.
29) What is procedure?
Procedure is a chronological order of action required to implement a policy and
to achieve an objectives.
30) What is programme ?
Programme is a broad term which includes goals , polices , procedure , rules , task
assignment , step to be taken, resources to be employed to carryout a given course of
action.
31) Define budgets.
A budget is a statement of expected result in numerical terms and therefore , it may
be referred as a numerical programmer.
32) What is objective?
Objectives are the aims, purposes or goals that an organization wants to
achieve over varying period of time.
33) What is MBO?
MBO is a process whereby the superior and the superior and the subordinate
manager of an enterprise jointly identify its common goals, define each individuals major
areas of responsibility in terms of result expected of him, and use these measures as guides
for operating the unit and the contribution of each of its members is assessed.
34) What is meant by strategy?
A strategy may also be defined as a special type of plan prepared for meeting
the challenge posted by the activities of competitors and other environmental forces.
35) What are the major kinds of strategies and policies?
Growth, Finance, organization, personnel, products or service and market.
36) Write down any four factors which lead to fail of strategic planning.
Managers are inadequately prepared for strategic planning. The information for
preparing the plans is insufficient for planning for action. The goals of the Organization are
too vague. The business units are not clearly identified.
37) What is planning premises?
The assumptions about future derived from forecasting and used in planning
are known as planning premises.
38) What are the practices made in making effective premising?

Selection of premises.
Collection of information..
Development of alternative premises for contingency planning.
Verification of the consistency of premises.
Communication of planning premises.
39) Explain the term decision and decision making?
A decision may be a direction to other to do or not to do...Decision making is
defined as the process of choosing a course of action from among alternatives to achieve
a desired goal. It is one of the functions of management and also a core process of
planning the management executive takes a number of decisions every day. Thus,
decisions may be rational or irrational. The best one is selected out of the available
alternatives.
40) How would you evaluate the importance of a decision?
Decision making is a selection process. The best alternative is selected out of many
available alternatives. Decision making is a goal oriented process. Decisions are made
to achieve some goal or objective. Decision making is the end process. It is preceded by
detailed discussion and selection of alternatives. Decision making is a human and rational
process involving the application of intellectual ablates. It involves deep thinking and
foreseeing things. Decision making is a dynamic process. An individual takes a number of
decisions each day.
41) Mention the three approaches generally adapted by managers in selections
an alternative?
Quantitative and Qualitative analysis.
Marginal analysis.
Cost effectiveness analysis.
PART-B
SOCIAL RESPONSIBILITY AND ETHICS?
SOCIAL RESPONSIVENESS The ability of a corporation to elate its operations
and policies to the social environment in ways that are mutually beneficial to the
company and to society.
- Reaction or proaction
- The role of government
- The influence of values and performance
- Criteria on behaviour
Def . Peter Drucker Social Responsibility requires managers to consider whether
their action is likely to promote the public good, to advance the basic beliefs of our
society, to contribute to its stability, strength and harmony.
The Social Audit
The Social audit has been defined as a commitment to systematic assessment of
and reporting on some meaningful;, definable domain of companys activities that
have social impact.
Society has become increasingly aware of the interdependence between the
business and its environment. As business grow in size and power, society expects
more from them several forces have led to the development of the concept of social

Responsibility. Some of the forces are Consumerism

Trade Union
Public Opinion
Enlightened Self Interest
Professionalisation
Trusteeship
Responsibility of business to perform its basic economic function of producing
and supplying products and services in the most efficient manner so as to
maximize profits.
Social Responsibility of Business
SHARE
HOLDERS
OTHERS EMPLOYE
ES
BUSINESS
COMMUNI CUSTOME
TY RS
GOVERNM
ENT
Ethics in Managing
- Ethics is defined as the discipline dealing with what is good and bad, with moral
duty and obligation.
- Personal Ethics has been referred to as the rules by which an individual lives his
or her personal life.
- Accounting ethics pertains to the code that guides the Professional conduct of
accountants.
Business Ethics is concerned with truth and justice and has a variety of aspects such
as expectations of society, fair competition, advertising, public relations, Social
responsibilities, Consumer autonomy and Corporate behaviour in the home country
as well as abroad.
Ethical Theories
- Utilitarian Theory suggests that plans and actions should be evaluated by their
consequences.
- Theory based on rights holds that all people have basic rights.
- Theory of justice demands that decision makers be guided by fairness and equity,
as well as impartiality.
Institutionalizing Ethics
This means applying and integrating ethical concepts into daily action. This can be
accomplished in 3 ways1. By establishing appropriate company policy or a code of Ethics
2. By using a formally appointed ethics committee
3. By teaching ethics in Management development programs
A code is a statement of Policies, principles, or rules that guide behaviour.
The functions of Ethics Committee includes1. holding regular meeting to discuss ethical issues
2. dealing with gray areas
3. Communicating the code to all members of the Organization
4. Checking for possible violations of the Code
5. Enforcing the Code
6. Rewarding compliance and punishing violations
7. Reviewing and updating the code
8. reporting activities of the committee to the board of directors

Factors that raise Ethical Standards

1. Public disclosure and publicity
2. The increased concern of a well informed public.

Define Globalisation?
Globalization means covering or affecting the whole world. It means integration of the
domestic economy of a country with the international economy. Recent
developments in information and communication technology have accelerated the
pace of globalization.
Globalisation means the internationalization of trade. Particularly
product transaction and the integrating of economic and capital markets
throughout the world.
The integration takes place when trade exists freely among the different
countries, thus the world economy becomes a single market or single
economy.
In globalization there is no restriction of quota, license, tariff and other
administrative barrier for trade.
The term globalization has four parameters:
Reduction of trade barriers, so as to permit free flow of goods across national
frontiers.
Free flow of capital among nations.
Free flow of technology among nations.
Free movement of labour among different countries of the world.
Benefits of Globalisation
Improves efficiency
Improves factor Income
Improves finance
Gains from Migrations
Drawbacks of Globalisation
Globalisation increases the problems of unemployment
Domestic Industries finds difficulty in survival.
Only group of people who participate in the process of
Globalization will be benefited, this creates income inequality
within the country
Control on domestic economy becomes more difficult
Developing country suffers from the problem of brain-drain

Define MBO?
International Business
Involves commercial activities that cross national frontiers
- It is a process of Entrepreneur conducting business activities across
national boundaries
- It consist of Exporting, Importing, licensing, opening of Sales office
- The activities necessary for ascertaining the need and want of target
consumer often takes place in more than one country. When an
Entrepreneur executes his or her business model in more than one country
International Business Occurring.
Entry into International Business

The method of entering or engaging in International Business can be divided

into three categories
1. Exporting
Indirect Exporting
Direct Exporting
2. Non Equity arrangement Doing international business through an
arrangement that does not involve any investments.
- Licensing - allowing someone else to use something of the
companys in return for the payment of royalty
- Turn key Projects A foreign Entrepreneur build a factory or other
facility, training the workers, train the management and then turn it
over to the local owners once the operation is completed, hence the
name turn key operation
- Management Contracts Contracting management techniques and
skills. The management contracts allow the purchasing country to
gain foreign expertise without giving ownership of its resources to a
foreigner.
3. Direct Foreign Investments preferred mode of ownership
- Minority Interest Having less than 50% Ownership Position
- Joint Ventures Merger of two companies.
Globalization in India
Some major aspects of the policy of globalization in India are:
i)Liberalisation of imports:
Most imports has been put under open general licence (OGL) where
automatic permission is granted to import goods.Export oriented units (EOUs)
have been allowed to import freely all types of goods require by the unit for
manufacturing, production or processing. The Government in its trade policy
announced on 31 August 2004 has permitted import of second hand capital
goods without any age restrictions.
ii) Export promotion through rationalization of tariff structure:
Tariff structure refers to the pattern of custom duties levied on the
imports of various commodity groups. The government initiated the process of
tariff reduction in 1991, to bring our tariff rates in line with the other
developing countries: making Indian goods competitive in the world market.
High quality and low cost goods can offer competition in the world market
and improve Indias exports.
iii) Foreign direct investment:
iv) Foreign technology:
- Deciding in advance what to do, how to do, when to do and who is to
do it.
7. Bridges the gap between where we are to where we want to go.
8. Thinking before doing.
9. Intellectual demanding process.

Explain strategies,policies and planning premises?

Strategies:
- General program of action and deployment of resources to
attain
Comprehensive objectives.
- SWOT analysis
Eg 1. rural marketing
2. Extension of Distribution width & Length
3. Pester power strategy, social marketing, co-branding,
co-marketing.
- Contingent plan to meet the demands of a difficult situation.
- Mainly the job of the top management.
IV Policies:
General statements or understandings which guide or
channel
thinking and take actions in decision making.
Guidelines for decision making
All policies are statements, sometimes it is only practices
(implied)
Allows for some discretion otherwise it becomes rules
It is a means of encouraging discretion and initiative, but
within
limits.
Policies are developed with the active participation of the
entire top level executives.
Policy is in writing. They take concrete shape when they
are put in writing. This will ensure uniformity in
application, continuity and greater conformity.
Advantages:
5. Top management provides guidelines to lower level
managers.
6. Gives managers to act at all levels without the need to
consult the superiors every time.
7. Better Administrative control. Provides rational basis for
evaluating the results.
8. By setting up of policies, the management ensures that the
decisions made will be in tune with the objectives and
interests of the organization.
9. They save time and effort by pre-deciding problems in
repetitive situations. They save the management from the
botheration of repeating the expensive analysis required
to take the policy decision every time.
Limitations:
4. Policy is formulated under particular preset conditions
which do not remain the same for all problems.
5. Requires constant review and revision.
6. No formula for all problems
7. Serve as guides for thinking and action and do not provide
solutions to problems.
8. They are not substitute for human judgment. They only point
out the limits within which the judgment is to be taken.

9. They may stifle individual initiative and creativity.

Types of Policies:
a) Organizational and functional policies.
b) Originated, Appealed and Imposed policies
c) General and Specific policies.
d) Written and Implied policies.
Procedures:
It establishes a required method of handling future
activities.
They are guides to action, rather than to thinking.
Provides details of certain activity, the exact manner in
which it must be achieved.
Chronological order. (stated in steps)
Found in every level of an organization.
Advantages:
- Minimizes the burden of decision making
- Leads to simplification of work flow
- Elimination of unnecessary steps.
- Developed after careful analysis of various operations
which are necessary to bring co-ordination in
organization.
- Uniformity and conformity of action
- Aid to communication steps to be followed to complete
a particular work.
- Medium of control to evaluate the performance of the
subordinate
Limitations
- Rigidity- discourages improvement
- Fixed way of doing a particular job
- Need to be reviewed and updated constantly
VI Rules:
- Rules spell out specific required action or non action,
allowing no scope for discretion.
- Rules Vs Procedures Vs Policies
- Rules no time sequence No smoking
- Sequence of rules.
- Detailed recorded instructions
- Uniform handling of events
- To avoid repeated approval from higher levels for routine
matters.
- Offers definite direction to planning process
VII Programs:
- Combination of goals, policies, procedures, task
assignments, steps to be taken resources to be employed
to carry out a given course of action.
- Time element is introduced
- Planning for future events and establishing a sequence of
required actions.
- Supported by budgets.
- Primary program & supporting programs.
VIII Budgets:
4. Statement of expected results expressed in quantitative
terms.

5. Expected income and expenditure under different heads.

6. Gives clarity, direction and purpose in an organization.
7. Control device.
8. Fixed or variable (flexible) budget.
9. Functional budgets.

UNIT III
ORGANIZING
42) Define Organizing
Organizing is the process of identifying and grouping of activities required to attain
objectivities , delegating authority, creating the responsibility and establishing relationship
for the people to work effectively.
43) What do you understand by effective organizing?
Effective organizing focuses on finding in present organizing avoids organizational
inflexibility and makes the staff work effective by avoiding conflicts by clarification.
44) How informal organization characteristics differ from formal organization?
It arises without any external cause. It is created on the basis of some similarity
among the member. The bases of similarity may be age, sex, place of birth, caste, religion,
liking/ disliking etc
Informal organization has no place in the organization chart. It is one of the parts of total
organization.
45) What is span control?
Span of control means the number of people managed effective by a single superior
in an organization. The term Span of control is also known as Span of management,
span of authority ,and Span of responsibility . But span of management is a better term
because control and supervision are elements of management.
46) What is matrix structure?
Matrix structure is a hybrid organizational form, containing characteristics of both
project and functional structures.
47) How can we define power?
Power is the probability that one actor with in the relationship will be in a position
to carry out his own despite resistance.
48) What is line authority?
Line authority is the direct authority which a superior exercises over a number of

subordinates to carry out orders and instruction. IN organization process, authority is

delegated to the individuals to perform the activities.
49) What is staff authority?
The relationship between a staffs manager with whom he works depends in part on
the staff duties.

50) Define staffing.

Staffing is the part of the management process which is concerned with the
procurement utilization, maintenance and development of large satisfied work force on
the organization.
51) Define Human resource planning.
Human resource planning is the process by which an organization ensures that it
has the right number and all kind of people at the right place at the right time, capable of
effectively and efficiently completions, those tasks that will help the organization
achieve its overall objectives.
52) What is job analysis?
Job analysis is a detailed study of a job to identify the skills, experience and
aptitude required for the job.
53) What is job design?
The job design is usually broad enough to accommodate peoples needs and desires.
54) Define: Recruitment
B. Flippo defines recruitment as The process of searching for
prospective employees and stimulating to apply for jobs in the organization.
55) What is selection?
Selection is the process of finding out the most suitable candidate to the job out
of the candidates attracted
56) What is grading method?
It is one of the trait-based appraisal methods. The actual performance of the
employees is measured against these grades. This method is generally useful for
promotion based on performance.
57) What is mean by resources allocation?
Manager is responsible for allocation of money, material and human resource in
the organization. He utilizes minimum resource to give maximum profit to the
organization.

58) Define the Peter Principle.

The principle states that every person in a hierarchy tends to rise to the level of
his incompetence.
59) Define: Training
According to B.Flippo Training is the act of increasing the knowledge and skill
of an employee for doing a particular job.
Define; Organizational conflict.
According to step conflict is a process in which an effort is purposefully made by
one person or unit to block another that result in frustrating the attainment of others goals
of the furthering of his or her interests.
61) What is managerial grid?
Managerial grid is behavioral theory of leadership. It plays an important role
in managerial behavior in organizational development.
62) What is meant by the term directing?
Directing may be defined as the process of instructing, guiding and inspiring
human factors in the organization objectives. It is not only issuing orders and instructions
by a superior to his subordinates but also including process of guiding and inspiring them
to work effectively.
63) List down the human factors in managing?
Multiplicity of roles.
Individuality.
Personal dignity.

PART-B
Define departmentation?
As the process of grouping individual jobs in department. It involves grouping of
activities and employees into departments so as to facilitate the accomplishment
of Organisation Objectives.
Need & Importance of Department
1. Specialisation
2. Expansion
3. Autonomy
4. Fixation of responsibility
5. Appraisal
6. Management development
7. Administrative control
Choosing a basis for Departmentation
1. Specialisation
2. Coordination
3. Control

4. Economy
5. Attention
6. Human Consideration
Bases of Departmentation
1. Departmentation by Functional Basis Grouping of activities in accordance
with the function of an enterprise. Each major function of the enterprise is
grouped into a department.
Merits
o It is a logical and time proven method
o It follows the principles of specialization
o Authority and responsibility can be clearly defined and fixed
o Since the top managers are responsible for the end results control shall
become effective
Demerits
This type of departmentation shall develop a loyalty towards the functions
and not towards the enterprise as whole.
Co-ordination of different function shall become difficult
Only the departmental heads are held responsible for defective work

2. Departmentation by Territorial basis A company may have separate

departments to serve the southern region, northern region etc. It has the advantage
of the intimate knowledge of local conditions.
Merits
It motivates each regional head to achieve high performance
Provides each regional head an opportunity to adapt to his local
situation and customer need with speed and accuracy.
It affords valuable top-management training and experience to
middle level executives]enables the organization to take advantage
of locational factors, such as availability of raw materials, labour,
market, etc.
Enables the Organisation to compare regional performances and
invest more resources in profitable regions and withdraw resources
from unprofitable ones.
Demerits
May give rise to duplication of various activities. Many routine
and service functions performed by all the regional units can be
performed centrally b the head office very economically
Various regional units may become so engrossed in short run
competition among themselves that they may forget the overall
interest of the total organization.

- Departmentation by Process basis is done on the basis of several discrete

stages in the process or technologies involved in the manufacture of a product. A
cotton textile mill have separate departments for ginning, spinning, weaving,
dyeing and printing and packing and sales.
Merits
Facilitates the use of heavy and costly equipment in an efficient
manner.
It follows the priniciple of specialization each dept is engaged in
doing a special type of work. This increases efficiency.
It is suitable for Organisation which are engaged in the
manufacture of those product which involve a number of
processes.

Demerits
Difficult to compare the performance of different process based
departments
- Departmentation by Product basis suited for a large organization
manufacturing a variety of products. For each major product a semi-autonomous
department is created and is put under the charge of a manager who may also be
made responsible for producing a profit of a given magnitude. Product dept is the
logical pattern to follow when each product requires raw materials,
manufacturing, technology and marketing methods and that are markedly
different from those used by other products in the Organisation. Eg HLL
manufacturing detergents, toiletries, Clearasil cream and soap.
Merits
Relieves top management of operating task responsibility. It can
therefore better concentrate on such centralized activities like
finance, R& D and control
Enables the top management to compare the performance of
different products and invest more resources in profitable products
and withdraw resources from unprofitable ones.
Those who work within a department derive greater satisfaction
from identification with a recognizable goal.
Demerits
Results in duplication of staff and facilities
Employment of large number of managerial personnel is required.
Equipment in each product department may not be fully used

5. Departmentation by Customer basis An enterprise may be divided into a

number of departments on the basis of the customers that it services. For Eg. An
educational institution may have separate departments for day, evening and
correspondence course to impart education to full time students, locally employed
students and autstation students respectively.
Merits
It ensures full attention to major customer groups and helps the
company to earn goodwill.
Demerits
It may result in under utilization of resources and facilities in some
department.
There may be duplication of facilities
Authority
- Power to take decision
- Right to get orders and obey orders
- Power Ability of individual to influence the action of other person
- Authority right in a position to exercise discretion in making decision affecting
others.
Bases of Power
4. Legitimate
5. Expertness
6. Referrant
7. Reward
8. Coercive
Def Authority may be defined as legitimate right to give orders and to get orders
obeyed. It denotes certain rights to take decision and get them executed by their

subordinates.
3 types of Authority
Line authority are those that have direct impact on the accomplishment of the
objectives of the enterprises
- is the direct authority which a superior exercises over his subordinates to carry out
orders and instructions.
- The flow of line authority is always downward, that is from a superior to a
subordinate
- Creates a direct relationship between a superior and his subordinate
- Line authority is the direct authority which a superior exercises over his
subordinates to carry out orders and inspections such authority delegated top
those positions or elements of the organization which have direct responsibility
for accomplishing the primary objectives.
- Line relationship performs the following roles
a. as a chain of command
b. as a carrier of accountability (subordinate is answerable to his
superior)
c. as a channel of communication

Define Line Authority Staff Authority?

1 Right to decide and command Right to provide advice, assistance
and information
2 Contributes directly to the Assist line in the effective
accomplishment of Organisational accomplishment of Organisation
objectives objectives
3 Relatively unlimited and general Relatively restricted to a particular
function
4 Flow downward from a superior to May flow in any direction depending
subordinate upon the need of advice
5 Creates superior and subordinate Extension of line and support line
relation
6 Exercise control Investigates and reports
7 Makes operating decision Provides idea for decision
8 Bears final responsibility for results Does not bear final responsibility
9 Doing functions Thinking function
10 Provides channel of communication

UNIT IV
DIRECTING
64) Define creativity.
Creativity is defined as the ability to produce new and useful ideas through the
components in novel and non obvious ways. Creativity exists throughout the
populations, largely independent of age , sex and education.
65) What is a SCAMPER tool?

SCAMPER is a checklist that helps us to think of changes. We can make to an

existing product to create a new one. These changes can be used either as direct
suggestions or as starting points for lateral thinking.
66) What is meant by reframing matrix?
Reframing Matrix is a simple technique that helps to look at business problems
from a number of different viewpoints. It expands the range of creative solutions that you
can generate. The approach relies on the fact that different people with different
experience approach problems in different ways.
67) State the function of mind mapping tool?
This tool is similar to concept fan except looking one step back from main topic
.A mind map consists of a central word or concept with 5 to10 main ideas that relate to
that word , similar to creating a spider-web.
68) Mention the use of DO IT process for creativity?
DO IT is a process for creativity. Techniques explained earlier in this chapter
focus on specific aspects of creative thinking. DO IT bundles them together introduce
formal methods of problem definition and evaluation. These help you to get the best out
of the creativity techniques. DO IT is an acronym that stands for:
D Define problem
O Open mind and apply creative
techniques I _ Identify best solution
T _ Transform
69) Differentiate innovation and invention.
Innovation means the use of creative ideas. Invention means really finding
new things which are not already available.
70) How can be harmonizing objectives achieved?
Mutual trust.
Cooperation and understanding.
Workers participation in management, and
Balancing the objectives of the organization with those
of individuals.
71) Define multiplicity of roles.
Individuals are not only the productive factor in managements plans. They
are members of social system of many organizations.
72) What is meant by Brain storming?
Brainstorming is an excellent way of developing many creative solutions to a
problem. It works by focusing on a problem, and then coming up with very many radical

solutions to it . The essence of brainstorming is a creative conference, ideally of a to 8

to12 people meeting for less than an hour to develop a long listed without criticism on a
backboard or newsprint as they are offered ; one visible idea leads to others. At the end of
this session, participants are asked how the ideas could be combined or improve.

73) Define motivation

According to koonts and ODonnell, Motivation is a general terms applying to the
entire class of drives, desires, needs wishes and similar forces that induce an individual or a
group of people to work
74) Names the steps involved in motivation process.
Analysis of situation.
Preparing, selecting and applying a set of appropriate motivating
tools.
Follow up.
75) What are the types of motivation?
1.
2.
3.
4.

Positive motivation
Negative motivation
Extrinsic motivation
Intrinsic motivation

DEFINE LEADERSHIP AND ITS ELEMENTS?

Definitions
Leadership is defined as influence, the art or process of influencing people so that they
will strive willingly and enthusiastically toward the achievement of group goals.
- Leaders act to help a group attain objectives through the maximum application
of its capabilities.
- Leaders must instill values whether it be concern for quality, honesty and
calculated risk taking or for employees and customers.
SKILLS
1. The ability to use power effectively and in a responsible manner
2. The ability to comprehend that human beings have different motivation forces at
different times and in different situations
3. The ability to inspire
4. The ability to act in a manner that will develop a climate conductive to responding
to and arousing motivations.
5. Fundamental understanding of People
6. ability to inspire followers to apply their full capabilities to a project
Leadership Styles
1. Autocratic Leader Commands and expects compliance, is dogmatic and
positive, and leads by the ability to withhold or give rewards and punishment.
2. Democratic or Participative consults with subordinates on proposed actions
and decision and encourage participation from there
3. Free-rein leader / laissez-faire Leadership uses his or her power very little,
giving a high degree of Interdepence in their operations. Leaders depend largely

on subordinates to set their own goals and the means of achieving them, and they
see their role as one of aiding the operation of followers by furnishing them with
information and acting primarily as a contact with the groups external
Environment.
4. Paternalistic Leadership Serves as the head of the family and treats his
followers like his family members. He assumes a paternal or fatherly role to help,
guide and protect the followers.
Functions
1. Goal Determination
2. Motivating Followers
3. Direction
4. Coordination
5. Representation
Importance of Leadership
1. Aid to authority
2. Motive power to group efforts
3. Basis for co operation
4. Integration of Formal and Informal Organization.
Theories
1. Trait Theory A Leader is a one who has got a enthusiastic look, courageous
look describes the external qualities of a person
2. Behavioral Theory A person who intend to be leader, they do not have any
qualities like Trait Theory
3. Contigency Theory
a. Fiedler Model
b. Likert Model
c. Managerial Grid Theory
Fiedler Model - Leaders can be classified as two a. Relationship Oriented
b. Task Oriented
3 Situations been given to find the performance of two types of Leader Leader member Relationships
- Task Structure
- Position Power
Employees under Relationship oriented Leader seems to achieve more performance than
the other.
Likerts Model
System 1 Exploitive Autocratic Leader (oriented towards task alone)
System 2 Benevolent Autocratic Leader (task oriented but has the quality of opposing if
things are good)
System 3 Participative Leader (concerns the employees for a particular kind of work,
though he concern decision w ill be taken only by him.
System 4 Democratic Leader
3 Situations
1. Confidence / Trust in Employees
2. Subordinates feeling of freedom
3. Managers seeking involvement with Subordinates
Ratings of the Leaders by their employees at different situations
Managerial Grid Theory
Proposed by Blake and Mounton
2 Kinds of Leader
1. Leaders concerned for People
2. Leader concerned for production / Task

Leader styles
1. Task Manager Eg Defence , Concerned only on task
2. Team Builders leaders high concern for production as well as people
3. Impoverished Style Unfit for Leadership qualities, less concern for people as
well as production
4. Country club Manager Eg Trade union, high concern for people than
production.
COMMUNICATION
Communication is derived from the Latin word Communis which implies common.
Communication is the interchange of thoughts and information.
ELEMENTS
1. Sender
2. Message The Subject matter of Communication
3. Encoding act of translating he msg into words, pictures, symbols
4. Channel Media used
5. Receiver
6. Decoding interprets the msg to draw meaning from it. He converts symbols,
signs or pictures into meaning
7. Feedback
Sound Communication provides the following advantage
1. Improves Mangerial Performance
2. Facilitates Leadership
3. Increases job Satisfaction
4. Reduces time and efforts
MEDIA OR METHODS OF COMMUNICATION IN DETAIL?
1. Oral Communication
2. Written Communication
3. Gestural Communication
ORAL COMMUNICATION
Oral Communication involves exchange of messages through spoken words. It may take
place. i) by face- to face contacts ii) through mechanical devices like telephone.
Merits
Oral or Verbal communication offers the following advantages:
1. Economical
2. Personal touch
3. Speed
4. Flexibility
5. Quick response
Demerits
Oral Communication suffers from the following weaknesses1. Lack of record
2. Time Consuming
3. Lengthy message
4. Physical distance
5. Misunderstanding
WRITTEN COMMUNICATION
Written Communication is transmitted through written words in the form of letter,
circular, memos, bulletins, instruction cards, manuals, handbooks, reports, returns,
Merits
1. Effectiveness
2. Lengthy messages
3. Economical

4. Repetition
5. Permanent record
6. Better response
Demerits
1. Time Consuming
2. Expensive
3. Inflexibility
4. Little secrecy
5. Lack of personal touch
6. Misunderstanding
COMMUNICATION NETWORKS
1. Circle Network
2. Chain Network
3. Wheel Network
4. All Channel Network
BARRIERS TO COMMUNICATION
a. Organisational Barriers
1. Ambiguous policies, rules and procedures
2. Status patterns
3. Long chain of Command
4. Inadequate Facilities
b.Mechanical Barriers
1. Overloading
2. Semantic barriers
3. Noise
c.Personal Barriers
1. Lack of attention or interest
2. Failure to Communicate
3. Hasty Conclusion
4. Distrust of communicator
5. Improper state of mind.
MAKING COMMUNICATION EFFECTIVE
1. Sound Organization Structure
2. Clear messages
3. Two-way Communication
4. Multiple Channels
5. Good Listening
6. Effective Control
7. Modern Instrument
8. Human Relations attitude
ESSENTIALS OF GOOD COMMUNICATION SYSTEM
1. Clarity of messages
2. Completeness of message
3. Consistency of message
4. proper timing
5. Credibility
6. Empathy
7. Follow-up
8. Economy

UNIT V

UNIT V CONTROLLING
83) Define control?
According to Knootz Controlling to the measurement and correction of
performance in order to make sure that enterprise objectives and the plans devised to attain
them are accomplished.
84) Why need of control in the organization?
Control process is universal.
Control is a continuous process.
Control is action based.
Control is forward looking.
85) Why need of control in the organization?
Control can minimize the mistake.
To discover the deviations in the management
To minimum dishonest behaviors of employees.
86) What are the Inter relationship between planning and end with control?
The management process of adjusting future action on the basis of
information about past performance. Control helps in achieving them.
87) What is Feedback Control?
Feedback control is the process of adjusting future action on the basis
of information about past performance.
88) What is management by exception?
Actual performance compare with the standard performs deviations which can
not significant should be avoided.
89) What is concurrent control?
This control measures for taking corrective action while a programme meet
any obstacle in this activities.
90) What is feed forward control?
It is preventive in nature. This control involves evaluation of inputs and
taking corrective action before a particular operation is completed.
91) What is direct labour Budget?
Direct labor Budget reveals the expected labor requirements during the budget
period.
92) What is fixed Budget?

In this budget in which targets are rigidly fixed .This is a forecast of the targets
for the coming fear prepared well in advance.
93) What is flexible budget?
A flexible budget is a budget designed to change in the level of activity.
94) What is Internal Audit?
Internal audit is done by an internal auditor who is an employee of the organization.
He examines the objectives, policies, plans procedures and performance of the management
95) Define Productivity?
Productivity is a measure of how much input is required to produce a given output
.i.e. the ratio (output/input) is called productivity.

96) Define: OR
Operation Research is a systematic analysis of a problem through scientific methods
,carried out by appropriate specialists ,working together. As a team, finding an optimum
and the most appropriate solution to meet the given set of constraints.
97) What is JIT?
Just in Time Inventory system. In this method the suppliers deliver the materials to
the production spot just in time to be assembled .This method reduces cost of inventory.
98) What is value engineering?
It is a special type of cost reduction and product improved technique.
99) What is preventive control?
An efficient manager applies the skills in managerial philosophy to eliminate
undesirable activated which are the reasons for poor management.
100) define: Multinational Corporation?
An enterprise which own or control production or service facilities outside the
country in which they are based .
101) What is ethnocentric attitude?
The manager orientation and managerial activities, operations was based on that of
the parent company.
102) What is polycentric attitude?
Polycentric attitude manager orientation was host country orientation.
103) What is geocentric attitude?

This type of managers is trained to balance central, local and global objectives.
PART-B

Nature & Purpose of Control?

1. Control is an essential function of management
2. Control is an ongoing process
3. Control is forward working because pas cannot be controlled
4. Control involves measurement
5. The essence of control is action
6. Control is an integrated system
Elements of Control
Planning
Information Feedback
Delegation of Authority
Remedial action
Control Process
Fixation of Standard
Measurement of Performance
Comparing performance with standards
Correction ofDeviations
Problems in the Control Process
Magnitude of Change
Time rate of Change
Erroneous standard ( Mistakes in setting standard)
Workers Resistance
Communication Problems
Characteristic of an ideal Control system
Suitable
Flexible
Economical
Simple
Objective
Prompt
Forward looking
Suggestive
Strategic point control
Motivational
Techniques of Managerial Control?
Traditional Techniques
Personal Observation ( For Eg. A Factory manager goes around the plant,
observes the performance of Employees and Machines)
Good Organisation Structure
Unity of Plans
Statistical Control Reports
Budgetary control Statement expressed in financial terms
Master budget
Functional Budget - Sales budget, Production budget, Material
budget, Labour budget, Cash budget, Administrative Overhead
budget,

Capital & Revenue budget

Fixed and Flexible Budget
Zero base budgeting ( the budget proposals are considered from the
ground up ( zero base) or from scratch
Objectives of Budgetary Control
a. Planning
b. Coordination
c. Control
d. Motivation
e. Efficiency
Merits
Optimum use of resources
Fixation of Responsibility
Effective coordination
Planned approach
. Profit & loss control
. External audit Control
. Overall Control criteria ( BEP Analysis)
. Return on Investment Control
. Management Audit
Organisation Structure
Executive appraisal
Functioning of the management board
Soundness of Earning
Economic Functioning
Service to stock holders
R&D
Fiscal Policy
Production Efficiency

. Responsibility accounting
Cost centre
Profit centre
Investment centre
Developing Excellent Managers The key to preventive control
- Efforts required on the part of managers themselves
Willingness to learn
Planning for Innovation & Inventions
Tailoring Information
- Efforts required on the part of the Organisation
Acceleration of Managerial Development programmes
Measuring Managerial programmes and rewarding it
Need for management R & D
Need for Intellectual Leadership

Define Globalisation?Explain its benefits and drawbacks?

Globalisation means theinternationalization of trade. Particularly product
transaction and the integrating of economic and capital markets throughout
the world.
The integration takes place when trade exists freely among the different
countries, thus the world economy becomes a single market or single

 economy.
In globalization there is no restriction of quota, license, tariff and other
administrative barrier for trade.
Benefits of Globalisation
Improves efficiency
Improves factor Income
Improves finance
Gains from Migrations
Drawbacks of Globalisation
Globalisation increases the problems of unemployment
Domestic Industries finds difficulty in survival
Only group of people who participate in the process of Globalisation will be benifitted, this
creates
income inequality within the country
Control on domestic economy becomes more difficult
Developing country suffers from the problem of brain-drain
International Business
15. Involves commercial activities that cross national frontiers
16. It is a process of Entrepreneur conducting business activities across national boundaries
17. It consist of Exporting, Importing, lIcensing, opening of Sales office
18. The activities necessary for ascertaining the need and want of target consumer often
takes
place in more than one country. When an Entrepreneur executes his or her business
model in more than one country International Business Occuring.
Entry into International Business
The method of entering or engaging in International Business can be divided into three
categories
1. Exporting
o Indirect Exporting
o Direct Exporting
2. Non Equity arrangement Doing international business through an
arrangement that does not involve any investments.
- Licensing - allowing someone else to use something of the companys in return
for the payment of royalty
Turn key Projects A foreign Entrepreneur build a factory or other facility,
training the workers, train the management and then turn it over to the local
owners once the operation is completed, hence the name turn key operation
Management Contracts Contracting management techniques and skills. The
management contracts allows the purchasing country to gain foreign expertise
without giving ownership of its resources to a foreigner.
- Direct Foreign Investments preferred mode of ownership
Minority Interest Having less than 50% Ownership Poaition
Joint Ventures Merger of two companies
5